Boothbay selectmen have two important questions for Boothbay Region Water District Manager Jon Ziegra. The selectmen want to establish a municipal capital reserve account similar to one used by the water district. The selectmen want Ziegra’s advice for establishing a capital improvement master plan for the 2016-17 budget.

The selectmen also have questions about a potential water rate increase. In August, the water district trustees authorized spending up to $4,000 for pursuing a rate case authorization from the Maine Public Utility Commission. A preliminary study indicated an 11.4 percent rate increase is needed, according to Maine Water Company, a private Biddeford firm which examined the district’s rates in January.

During the selectmen’s Dec. 9 meeting, the board decided to invite Ziegra to address both topics at a future meeting.

“As long as he’s here talking about the capital improvement master plan we might as well ask him about the rate increase,” Selectman Steve Lewis said.

Lewis expressed concern about a potential double-digit rate increase.

“It wasn’t a year and a half ago we were told Southport joining the water district wouldn’t drive up costs,” Lewis said. “We were told that wouldn’t be a factor and here we are now looking at a pretty hefty increase.”

In August, Ziegra told the trustees the potential rate increase is needed for meeting the district’s current commitments and five-year capital and improvement plan. On Dec. 8, Ziegra explained that Southport’s addition would benefit all ratepayers in time.

“With Southport, the district has taken on additional debt, but we also took on 530 additional paying customers with a pretty good water system infrastructure. Southport’s addition is pretty revenue-neutral for us. And the rate increase would’ve eventually happened.”

The selectmen also have a question for one of the town’s representatives on the Joint Economic Development Committee. The board wants to know if Steve Reny is still interested in serving on the committee, according to town officials.

The 10-person board has representatives from Boothbay and Boothbay Harbor working on local economic development. Each town appointed five representatives this year. So far, Reny hasn’t attended any of the meetings.

The selectmen directed Town Manager Dan Bryer to see if Reny still wanted to serve.

“Before we take any action, I think a phone call should be made to see if he still wants to serve,” Lewis said.

Bryer indicated he spoke to Reny earlier this year about serving.

“Initially, he indicated there might be a problem, but later indicated he still wanted to serve,” Bryer said.

In other action, the selectmen are expected to sign a temporary agreement with Inland Fresh Seafood Corporation of America to lease an existing dam and fence along Knickercane Island’s south shore. Inland Fresh Seafood is a foreign corporation organized and existing under the laws of Georgia, according to a previous lease agreement with the town. Inland Fresh Seafood entered into a 20-year lease with the town in 1990.

The lease allowed Inland Fresh Seafood to build a dam for aquaculture, according to Bryer. The town leased the property for $1 per year. The agreement created a public recreational area for swimming area.

The deal expired in 2010, but the company has continued operating the fishery. Inland Fresh Seafood recently asked to renew the lease.

“Inland (Fresh) Seafood’s lender wanted to see the lease. That’s how we found out it lapsed,” Bryer said. “I’m not sure what happened. it must have fell between the cracks during the transition between (town managers) John (Anderson) and Jim (Chaousis).”

The board also voted 4-0 approving a wharves and wiers application for Hodgdon Lane residents Robert and Elaine McCoy. The couple want to construct a pressure-treated wooden six-foot by 55-foot pier. They plan on connecting the structure to a three-foot by 40-foot aluminum ramp and a pressure-treated wooden 10-foot by 20-foot float with a 10-foot by 40-foot timber frame float haul-out.

The selectmen will meet next at 7 p.m. on Wednesday, Dec. 23 in the municipal building.